Rental Property Damage & Insurance Coverage

Whether you own a single-family rental home or a large apartment complex, property insurance is crucial to protect your rental property from many types of perils. An experienced agent will analyze your rental operation and recommend a policy for you.

What Property Insurance Covers

Most property insurance covers damages
or losses from fire, storms, and burglary. Be sure to check out whether your
policy will cover “loss of rents” as a result of one of these perils (such as a
fire in your building which makes a unit uninhabitable).

Property insurance should also
reimburse your losses from vandalism (whether by a disgruntled tenant who
punches holes in an apartment wall or a local teenager who paints graffiti on the
side of your building). Always report vandalism to your local police
department (your insurance company may require a police report before
reimbursing you for vandalism-caused damage).

Property insurance does not cover
all losses (mudslides, for example, may be excluded), so be sure you know what
is and is not covered and the dollar limits of your policy.

Earthquake, Flood,
and Other Insurance

Depending on where your property is
located, you may want to purchase additional protection for special perils such
as earthquakes and floods (these are not typically included in property
insurance policies).

Liability Insurance

A comprehensive policy will also include liability
insurance, covering injuries or losses suffered by tenants and others as a
result of a defective condition on your rental property. For example, if your tenant
breaks a leg as a result of falling down your broken front steps, liability
insurance will cover the tenant’s medical bills. Liability insurance will also
cover lawyers’ bills for defending personal injury lawsuits against you. The
most comprehensive type of liability insurance covers libel, discrimination,
unlawful or retaliatory eviction, and invasion of privacy (with some
exclusions, such as intentional acts or violations of criminal statutes).

Renters’ Insurance

Many landlords (particularly in
high-end rentals) require tenants to buy renters’ insurance. This covers the
tenant from losses or damage to their belongings due to theft or fire. Renters’
insurance also covers as injury to other people or property damage caused by
the tenant’s negligence.